Finance glossary
Strike Price
Definition
The fixed price at which an option can be exercised.
The strike price is the predetermined level at which an option holder can buy (call) or sell (put) the underlying asset. The relationship between the strike and the market price determines whether an option is in, at, or out of the money, and drives much of its value.
In a sentence
The call had a strike price of $100, so it only had value once the stock rose past that level.
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